Cebu Pacific plans to raise US$500 million to bolster finances to survive COVID-19 pandemic

Philippine airline Cebu Pacific said Thursday (8 October) that it plans to raise up to US$500 million to “strengthen its balance sheet and ensure that it is well-positioned to recover from the impact of COVID-19”. Cebu said it told the Philippine Stock Exchange (PSE) that it will be seeking approval for the issuance of up to US$250 million in new convertible preferred shares, as well as another US$250 million in privately placed convertible bonds. The capital raising will be considered by shareholders at a special meeting called for 20 November. The new convertible preferred shares will be made available to all stockholders, including JG Summit, giving opportunity for all investors to participate; while the privately placed convertible bonds, will be made available to a limited number of international investors. “We need to create a longer runway for (Cebu) so that we can continue providing affordable and accessible air transport services” for everyone said Lance Gokongwei, president and CEO of Cebu Pacific and JG Summit Holdings. JG Summit Holdings, parent and 67 percent-owner of Cebu, will invest its proportionate share of the US$250 million convertible preferred share, which will be offered to existing shareholders for subscription. JG Summit further commits to take on any balance of unsubscribed shares in this general offering. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]